Gergely Horvath
Accepted by Journal of Economic Behavior and Organization, August 2014
http://www.sciencedirect.com/science/article/pii/S0167268114002212
Accepted by Journal of Economic Behavior and Organization, August 2014
http://www.sciencedirect.com/science/article/pii/S0167268114002212
In this paper the author builds a labor market model with heterogeneous workers (differed by skill/sector type) and investigates the influence of social networks on job matching outcome. It turns out that compared with a formal market an economy with social networks has lower bad match level and higher matching efficiency when the skill homophily of the networks is sufficiently high. Moreover, the impact depends on the degree of homophily.
The reason here is unambiguous: employed workers usually hear about job information within the sector of their current job and transmit it to those with similar skills, which would reduce mismatch frequency.
The reason here is unambiguous: employed workers usually hear about job information within the sector of their current job and transmit it to those with similar skills, which would reduce mismatch frequency.
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